NEW YORK (TheStreet) -- Strength from homebuilder stocks following this week's improving housing data gives investors an opportunity to book gains of 19% to 33% from levels in October. The trading ranges may widen with some higher highs, but the housing data weren't strong enough to sustain technical breakouts for these stocks.
Here are the current trading ranges.
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D.R. Horton (DHI) ($25.30) rebounded by 33% from its Oct. 13 low of $19.29 to $25.59 on Thursday, crossing above its 200-day simple moving average of $22.54, with its May 15, 2013 high at $27.74. This stock is up 13% year to date.
KB Home (KBH) ($17.36) rebounded by 28% from its Oct. 13 low of $13.75 to $17.66 on Thursday, crossing above its 200-day SMA of $17.01, with its July 2 high at $18.98. This stock is down 4.5% year to date
Lennar (LEN) ($46.97) rebounded by 26% from its Oct.13 low of $37.50 to a multiyear intraday high at $47.20 on Thursday, crossing above its 200-day SMA of $40.33. This stock is up 19% year to date.
PulteGroup (PHM) ($21.36) rebounded 30% from its Oct. 13 low of $16.56 to $21.48 on Nov.19, crossing above its 200-day SMA of $19.18, with its Feb. 26 high at $21.65. The stock is up 4.9% year to date.
Ryland Group (RYL) ($38.37) rebounded 28% from its Oct. 13 low of $30.33 to $38.71 on Wednesday, crossing above its 200-day SMA of $37.89, with its July 1 high at $40.35. The stock is down 12% year to date.
Toll Brothers (TOL) ($34.21) rebounded 19% from its Oct. 13 low of $28.92 to $34.49 on Thursday, which was still below its 200-day SMA of $34.77, with its Sept. 2 high at $35.94. This stock is down 7.5% year to date.
This week's news on the housing market was not as robust as the positive moves for the homebuilder stocks.
The National Association of Home Builders has stated that housing affordability slipped in the third quarter. Assuming that the U.S. median family income is $63,900, 61.8% of new and existing homes were sold to families earning $63,900 in the third quarter, down from 62.6% in the second quarter. The median home price rose 3.3% to $221,000 in the third quarter from $214,000 with the average 30-Year fixed rate mortgage down to 4.35% from 4.44%.
Homebuilder confidence rose by four points in November to 58. The NAHB cited improving consumer confidence. The Housing Market Index has been above the neutral 50 reading for five consecutive months, and the NAHB expects momentum will continue into 2015.